Chapter 8 Post Quiz
Analysis of Perfectly Competitive Markets

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Price-takers	a. A market structure in which there are many firms.
	2. Perfect competition	b. Relatively more elastic than the long-run supply curve.
	3. Profit maximization point	c. Occurs where P=AC.
	4. Zero-profit point	d. The area between the prevailing market price and the supply curve.
	5. Market supply curve	e. The payment for the use of an input.
	6. Short-run supply curve	f. Perfectly competitive firms.
	7. Long-run equilibrium	g. Occurs where P=MC.
	8. Rent	h. Will occur where AC=MC=P.
	9. Allocative efficiency	i. P=MU, P=MC, and MU=MC
	10. Producer surplus	j. Exists when no reorganization of production can make anyone better off without making someone else worse off.
	11. Conditions for allocative efficiency	k. Has a positive slope at low price levels and has a negative slope at high price levels.
	12. Imperfect information	l. Can be derived by summing the supply curves of the individual producers.
	13. Backward-bending supply curve	m. A market failure.